October 9, 2023 (MLN): In the wake of the buzz surrounding Attock Petroleum Limited (PSX: APL)'s keen interest in acquiring Shell Pakistan Limited (PSX: SHEL), Mr Shuaib A. Malik, Chief Executive Officer & Director of APL on Monday during Annual General Meeting (AGM) unveiled that Shell Pakistan Limited had already made firm commitments with another entity concerning this endeavour.
Since the company is deliberately expanding its business by venturing into the highly profitable Liquefied Petroleum Gas (LPG) market, the company will import LPG to facilitate this expansion, the board of the company notified during the meeting.
Pertaining to the concerns raised on the plunge in payouts, the board attributed this shift to substantially increased investment costs. For instance, the establishment of a single petrol pump in Islamabad now costs approximately Rs3 billion.
It is important to note that in 2023, APL's total cash dividend stands at Rs 27.50 per share, with a dividend payout ratio of 27%. This represents a significant reduction from the previous payout ratio of 70%-80%.
The CEO further stated that a substantial portion of the company's revenue is derived from the nozzle business. To maximize returns, APL wisely invests surplus cash in Treasury bills or other instruments with attractive returns and low risk. However, the company's primary focus remains on expanding sales.
APL's product portfolio encompasses various petroleum products, including High-Speed Diesel, Premier Motor Gasoline, Furnace Oil, Bitumen, Kerosene, and Lubricants, offering a range of automotive and industrial-grade lubricants.
The company is actively in the process of disbursing Rs1.4 billion in dividends to its shareholders, according to the board's update.
The company is also actively engaged in marketing Naphtha and LBO. Moreover, APL is expanding its presence in the Electric Vehicle (EV) sector through its EV charging facilities.
Copyright Mettis Link News
Posted on: 2023-10-09T14:18:14+05:00
